The Analytical Overview of the Main Currency Pairs on 2018.04.12

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.23551

Open: 1.23661

% chg. over the last day: +0.13

Day's range: 1.23596 – 1.23707

52 wk range: 1.0571 – 1.2557

There is an ambiguous technical pattern on the EUR/USD currency pair. The trading instrument is moving in flat. Investors closely monitor the conflict between the US, Syria and Russia. Local support and resistance levels are 1.23550 and 1.23750, respectively. We recommend opening positions from these marks.

The news feed on 2018.04.12:

- Publication of the ECB account on monetary policy at 14:30 (GMT+3:00);

- Import/export price indices in the US at 15:30 (GMT+3:00);

- The number of initial jobless claims in the US at 15:30 (GMT+3:00).

We also recommend paying attention to the speech of ECB member Coeuré.

The signals of the indicators are ambiguous. The price is testing 50 MA, which is dynamic support.

The MACD histogram is near the 0 mark.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which also signals to buy EUR/USD.

Trading recommendations

Support levels: 1.23550, 1.23300, 1.23000

Resistance levels: 1.23750, 1.24000

If the price fixes above the local resistance of 1.23750, the growth of the EUR/USD currency pair is expected. The target movement level is 1.24300-1.24500.

Alternative option. If the price fixes below 1.23550, it is necessary to consider sales of EUR/USD. The movement is tending potentially to the round level of 1.23000.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.41749

Open: 1.41733

% chg. over the last day: -0.09

Day's range: 1.41770 – 1.41949

52 wk range: 1.2361– 1.4345

Yesterday, a report on the manufacturing output in the UK was published, the value of which counted to -0.2% and was worse than the forecasted value of 0.2%. However, this report did not significantly affect the dynamics of the British pound. At the moment, the GBP/USD currency pair is in a sideways trend. Investors expect additional drivers. The key trading range is 1.41650-1.42000. The positions must be opened from these marks.

The publication of important economic reports from the UK is not planned today. We recommend paying attention to the speech of the governor of the Bank of England Carney.

The price is testing 50 MA, which is dynamic support.

The MACD histogram is near the 0 mark.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which gives a signal to buy GBP/USD.

Trading recommendations

Support levels: 1.41650, 1.41300, 1.40800

Resistance levels: 1.42000, 1.42300, 1.42600

If the price fixes above the round level of 1.42000, the GBP/USD currency pair is expected to grow. The movement is tending potentially to 1.42300-1.42600.

An alternative may be the decrease of GBP/USD to 1.41300-1.41000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.25986

Open: 1.25660

% chg. over the last day: -0.25

Day's range: 1.25820 – 1.25963

52 wk range: 1.2059 – 1.3795

At the moment, the USD/CAD currency pair is in a sideways trend. Investors closely monitor the events in Syria and the actions of the United States. Local support and resistance levels are 1.25600-1.26100. In the near future, a technical correction is not ruled out. We recommend opening positions from the key levels.

The news feed on Canada's economy is calm.

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator is in the overbought zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.25600, 1.25000

Resistance levels: 1.26100, 1.26600, 1.27300

If the price fixes above the level of 1.26100, the correction of the USD/CAD quotes is expected. The movement is tending potentially to 1.26600-1.27000.

Alternative option. If the price fixes below the local support of 1.25600, it is necessary to consider sales of USD/CAD. The target movement level is the round level of 1.25000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 107.192

Open: 106.783

% chg. over the last day: -0.35

Day's range: 106.775 – 106.845

52 wk range: 104.56 – 114.74

During yesterday's trading, the US dollar fell against the Japanese yen due to the growing geopolitical tension. At the moment, the trading instrument is being traded in a flat. The USD/JPY quotes are testing local support and resistance levels: 106.750 and 107.000, respectively. Financial market participants expect additional drivers. We recommend opening positions from the key levels.

The news feed on Japan's economy is calm.

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also signals to sell USD/JPY.

Trading recommendations

Support levels: 106.750, 106.400, 106.100

Resistance levels: 107.000, 107.300, 107.550

If the price fixes above the round level of 107.000, it is necessary to consider purchases of USD/JPY. The movement is tending potentially to 107.300-107.600.

Alternative option. If the price fixes below 106.750, the USD/JPY quotes are expected to decline. The target movement level is to 106.400-106.100.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.